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Investing.com - Wells Fargo (NYSE:WFC) initiated coverage on Soleno Therapeutics Inc. (NASDAQ:SLNO), a $3.6 billion market cap biotech company, with an Overweight rating and a price target of $123.00 on Wednesday. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $106 to $145.
The research firm’s decision comes as Soleno shares have declined 23% month-to-date, underperforming the SPDR S&P Biotech ETF’s 3% gain during the same period.
Wells Fargo attributes the recent stock weakness to concerns about the safety of Soleno’s VYKAT treatment, competitive pressures, and the company’s recent financing that may suggest mergers and acquisitions are not imminent.
The firm considers these concerns "overblown" and expresses confidence in VYKAT’s potential in the Prader-Willi syndrome (PWS) market, citing significant unmet medical needs and enthusiasm for treatment options.
Wells Fargo recommends buying Soleno stock at current levels, predicting steady share price appreciation over the next 12 months as VYKAT gains market traction.
In other recent news, Soleno Therapeutics reported $32.7 million in revenue for the second quarter, marking a strong start for its Vykat launch. This was highlighted by Stifel, which increased its price target for Soleno to $118, citing encouraging demand and prescriber engagement. TD Cowen also reiterated its Buy rating and $120 price target, noting strong sales momentum with 646 patient start forms. Meanwhile, H.C. Wainwright raised its price target from $100 to $110, maintaining a Buy rating despite a Citizen Petition from Scorpion Capital calling for VYKAT XR’s withdrawal. Cantor Fitzgerald and Baird both maintained positive ratings, with price targets of $123 and $121, respectively. Cantor Fitzgerald emphasized Soleno’s ongoing education efforts with healthcare providers. However, Baird’s reiteration followed a short report alleging safety concerns with Soleno’s drug, Vykat. These developments reflect a mix of confidence and scrutiny in Soleno’s market activities.
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